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Anonymous planned this with much discussion and arguing in IRC. Some wanted to attack secure.authorize.net, others paypal. I don't know how Anon works, power-structure-wise, but somehow the Ops chose paypal and it's done. This group is insane. They argue a lot, but they have the power to take down pretty much anybody on the web. I think the paypal attack is limited (officially) to 30 minutes, but since Anon is somewhat of a disorganized group it might last much longer.
> I don't know how Anon works, power-structure-wise,

It doesn't, really. People decide who to follow. Think of it more like a flashmob than an organization. Some people just start talking loud, and as long as they're reasonable, people follow. If they're not, nobody pays attention.

I've gotta say that I'm mostly sitting this one out as far my personal time and/or emotional investment, but gotta r-e-s-p-e-c-t for any group that can get it together enough to ddos visa, mc, and paypal in one day. :)
http is down but https is still up, so payments still work.

https://www.paypal.com

It's even lamer.

http://www.paypal.com redirects over to https. It's only http://paypal.com that's not coming up.

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Why didn't they go after the actual payment processing access points? That seems like the better target.
Probably because they don't have the capacity. Think about the traffic the actual payment processing sites get from ordinary use.
Though the website may be down, purchases aren't being affected. I just bought something using paypal 2mins ago.

Cousin comments indicate that it may be http vs https, which is at least confirmed in my browser: https://paypal.com loads while http://paypal.com doesn't (and with the www included in both)

EDIT: Perhaps this wasn't worthy of an upvote, but I'm having trouble finding inflammatory/offtopic/bad logic to give it a downvote. I'd welcome some discussion, though

this is what I love about the internet. The fact that is not centralised and disruptions happen on all sides of the camp. Hopefully it will remain this way though seeing more mutual respect would be nice also. A consequence of us getting along better. :)
PayPal was functioning for me about an hour ago. I was doing some ancillary stuff (generating postage) and it worked ok.